Halfway Home? Residential Housing and Reincarceration

Every year, hundreds of thousands of people are released from prison. For many, the transition back to society includes a mandatory stay in residential housing. I estimate the effect of residential housing on reincarceration using administrative data from Iowa. I address selection into residential housing by instrumenting for residential housing assignment with the recommendation rate of randomly assigned case managers. I find no evidence that Iowa’s costly investment in residential housing results in reduced reincarceration relative to parole. Instead, residential housing increases reincarceration due to violent crimes and technical violations, while decreasing drug and public order crimes. (JEL K42, R23, R31, R38)